S&P: Project Sunshine loan B+

Standard & Poor's said it assigned a long-term issuer preliminary credit rating of B to Project Sunshine III Pty Ltd., the parent entity of Project Sunshine IV Pty Ltd. and Australian directories publisher, Sensis Pty Ltd.

The group is collectively known as Project Sunshine. The ratings incorporate the agency's views on Project Sunshine III and its subsidiaries.

The outlook is stable.

The agency also said it assigned a B+ rating and a recovery rating of 2 to Project Sunshine IV Pty Ltd.'s proposed term loan B facility, which is guaranteed by Project Sunshine III Pty Ltd. A recovery rating of 2 indicates 70% to 90% expected default recovery.

Sensis is being partially divested by Telstra Corp. Ltd. for A$454 million in cash to an affiliate of private equity group Platinum Equity Advisors LLC. Telstra will retain a 30% interest in the Project Sunshine group, S&P said.

"The B preliminary rating on Project Sunshine group is based on our assessment of the group's vulnerable business risk profile and aggressive financial risk profile," said Paul Draffin, an S&P analyst.

The ratings also consider the group's exposure to the structurally declining print directories market and strong and growing competition in the online directories market, Draffin said in a press release.

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